China links with Taiwan undersea

The first cross-strait cable linking Taiwan and China has been given the green light.

The JV has been launched by Taiwan's Chunghwa Telecom who holds a 50% stake and China's China Telecom, China Mobile and China Unicom. Chunghwa Telecom has invested NT$100 million ($US3.4m) in the project and the three Chinese companies have jointly tipped in $NT100 million.

"The cable will help reduce the cost of telecommunications between Taiwan and the mainland, currently done via routes crossing third territories like Japan," an official at the National Communications Commission said.

The 220-kilometre (136-mile) submarine cable is scheduled to be completed in the first quarter of 2012.

The NCC spokesperson said that the regulator had determined that the project would not breach rules barring Chinese investment in tier-1 telecom operations.

Taiwanese operators had agreed not to use Chinese manufactured equipment on their end of the cable to quell security fears. ®